Ex-Power Minister, Olu Agunloye, Arraigned Over Alleged $6bn Fraud, Remanded In Kuje Prison

Ayuba Sanusi 

THE Economic and Financial Crimes Commission (EFCC) earlier today (Wednesday, 10 January 2024) arraigned a former Minister of Power and Steel Development, Olu Agunloye before Justice Jude I. Onwuegbuzie of a Federal Capital Territory (FCT) High Court, Apo, Abuja.

He was arraigned on seven count charges bordering on fraudulent award of contract and official corruption.

One of the counts reads: “That you, Olu Agunloye, whilst being the Minister of Power and Steel on or about the 22nd of May, 2003 in Abuja, within the jurisdiction of this honourable court awarded a contract, titled “Construction of 3,960mw Mambilla Hydroelectric Power Station on a Build, Operate and Transfer Basis” to Sunrise Power and Transmission Company Limited without any budgetary provision, approval and cash backing and you thereby committed an offence contrary to and punishable under Section 22(4) of the Corrupt Practices and other Related Offences Act, 2000.”

Another count reads: “That you, Olu Agunloye, on or about the 10th of August, 2019 in Abuja, within the jurisdiction of this honourable court, corruptly received the sum of Three Million Six Hundred Thousand Naira (N3,600,000.00) through your Guaranty Trust Bank account No. 0022530926 from Sunrise Power and Transmission Company Limited (SPTCL) and Leno Adesanya for having conveyed the “approval of the Government of the Federal Republic of Nigeria for the construction of the 3,960 megawatts Mambilla Hydroelectric Power Station” in favour of SPTCL which you did whilst serving as the Minister of Power and Steel without the approval of the Federal Executive Council contrary to and punishable under Section 8(1)(a) and (b) of the Corrupt Practices and Other Related Offences Act, 2000.”

He pleaded “not guilty” to all the charges when they were read to him.

Thereafter, prosecution counsel, Abba Muhammed prayed the court for a trial date and to remand the defendant in a correctional facility. Defence counsel, Adeola Adedipe (SAN), informed the court that he has filed a bail application for the defendant and prayed the court to grant him bail and commit him to the custody of the EFCC.

Justice Onwuegbuzie ruled that the defendant be remanded in Kuje Correctional Centre and set Thursday, 11 January 2024 for hearing on the bail application. 

Eighteen-Eleven Media recalls that a company, Sunrise Power and Transmission Company Limited had dragged Nigeria before the International Chamber of Commerce (ICC), Paris, France, alleging a breach of contract.

According to the company, it was awarded a $6 billion build, operate and transfer (BOT) contract in May 2003 by the Obasanjo administration but that the federal government repudiated the agreement.

Sunrise, therefore, is asking for a compensation of $2.3 billion, claiming it had spent millions of dollars on financial and legal consultants before the contract was jettisoned.

In its defence at the arbitration, Nigeria alleges fraud and corruption of public officials in the award of the contract – similar to the P&ID case in which a UK court nullified an $11 billion award against the country for similar reasons.

Meanwhile, in a letter to Mr Lateef Fagbemi, the Attorney-General of the Federation and Minister of Justice, Obasanjo said: “What is abundantly clear is that at no time did Dr Agunloye comply with the foregoing directive by bringing a memo to Council to include the [stated] comparison; nor can my directive be stretched to be inclusive of any approval to award any contract to Sunrise Power and Transmission Company Limited or any other person.

“In any event, my directive as stated above cannot by any stretch of imagination reasonably be extended to mean that issuing “a letter of comfort” translates to an award of contract.

“It is therefore clear that at no time was any contract awarded to Sunrise Power by anyone in my administration.”

He assured Fagbemi of his “continued commitment” to assist the government “by shedding more light on these matters as may be required of me. In particular, the embarrassment to Nigeria caused by these acts of fraud, deceit and malfeasance of Dr Agunloye and others of his ilk does no good to Nigeria or Nigerians. I have therefore resolved to make myself available to testify in arbitration or any forum should you consider it necessary in our national interest”.

In an earlier interview recently, Obasanjo claimed that Agunloye fraudulently awarded the contract for the power project without the approval of the Federal Executive Council (FEC). Obasanjo challenged Agunloye to tell Nigerians where he derived the authority to award a $6 billion contract to Sunrise Power and Transmission Ltd in respect of the project in 2003.

In his response, Agunloye said the nature of the initial contract for the Mambilla Power Project, which was awarded as a Build, Operate and Transfer contract in May 2003 under his watch. He said the government was not obliged to pay a kobo to Sunrise under the build, operate and transfer (BOT) agreement as it was to be fully funded by the newly registered company, whose declared assets were worth less than $2,000 at the time.

Agunloye was, however, silent on where and how he got authorization to commit the government to a $6 billion project when, according to Obasanjo, ministers could not approve more than N25 million when he was president.

Eighteen-Eleven Media